Spartan Stores will not build D&W near Medical Mile in Grand Rapids

Grand Rapids Press File PhotoSpartan Stores canceled plans to build a new store at the former site of Duthler's Family Foods at Michigan Street and Fuller Avenue NE, just east of the Medical Mile.GRAND RAPIDS -- Spartan Stores is dropping plans to build an $8 million "upscale" D&W Fresh Market near the city's Medical Mile at Michigan Street and Fuller Avenue NE, it announced Friday.

"It would have been a major financial investment, and we just felt with the uncertainty of market conditions today, we couldn't take that risk," said Jeanne Norcross, spokeswoman for the Bryon Township-based grocery chain.

The "difficult" decision not to build the two-story, 40,000-square-foot store in the heart of Grand Rapids was made a few weeks ago, she said.

Rosalynn Bliss, city commissioner for the 2nd Ward where the store would have been built, says she was disappointed with the way the much-anticipated project has fallen flat.

"I've heard pretty regularly from people in the neighborhood who are frustrated about how long the property has sat vacant," said Bliss. "We would have been great customers."

The store was announced more than two years ago and heralded in Mayor George Heartwell's State of the City speech, drawing a standing ovation from the audience. There was hope the store would be a catalyst for more redevelopment along the corridor, now lined with a hodgepodge of tired and newer buildings.

The city has a host of incentives it's willing to use to encourage development of the corner, said Kara Wood, the city's economic development director. Spartan acquired a long-term lease of the corner in a land swap with Duthler's Family Food, which took over the retailer's Family Fare store at Madison Avenue and Hall Street SE.

Co-owner Dave Duthler said he found out about a week ago that Spartan was pulling out. Reopening the old Duthler's store is not an option because of the cost required, said the independent grocer, whose stores are supplied by Spartan.

"It's just too soon. We just found out. We're getting over the initial surprise or disappointment and then we'll sit down and figure out what to do," Duthler said.

Spartan still will work with the Duthler family to find an "appropriate operation" for the Michigan and Fuller site.

"Our intent is not to leave the corner vacant," said Norcross, noting Spartan has 10 stores in the city limits; six it operates and another four it supplies. It's Fulton Heights Family Fare store is three-quarters of a mile from the site, she added.

"I'm not sure what economic uncertainty they're talking about," said Lori Terpstra, who spent $4 million to build a bigger Rylee's Ace Hardware at 1234 Michigan St. NE, kitty-corner from her former site, which adjoins the Duthler site.

"With the density of the neighborhood at Michigan and Fuller, and the lack of a grocery store, I can't believe they can't make a go of it," said Terpstra. "We've expanded and moved just kitty-corner, and we're flourishing."